In response to Meta’s lack of cooperation following the enactment of Bill C-18, the Canadian government has made the decision to cease advertising on Facebook and Instagram.
Bill C-18, which became law on 22nd June 2023, aims to compel social media platforms to compensate Canadian news organisations for the use of their content.
During a press conference, Heritage Minister Pablo Rodriguez criticised Facebook for its refusal to engage in discussions and provide fair compensation to media organisations. He emphasised that the current situation, where platforms benefit without contributing to the Canadian news system, is not acceptable. As a result, the government decided to suspend advertising on Facebook and Instagram.
Rodriguez expressed hope that negotiations could still take place with Alphabet to address their concerns. However, Meta’s unwillingness to cooperate led to the government’s decision to pull all advertising from Meta’s platform, which is estimated to cost the tech giant $7.54 mn in business.
The government’s stance is that the platforms should actively participate in the regulatory process, contribute their fair share, and ensure that news content remains accessible on their platforms.